Chile swings into action with credit cards, auto loans and more

The Chilean summer is winding down and dealmakers are back in force. ABN Amro Securitizadora is aiming to run a credit card deal through the market in mid-April - its first foray into this still-emerging asset class - according to a source on the deal. The transaction is backed by receivables stemming from purchases made through Salud Matico (literally "health-matic") credit card. Originated by Matic Kard, the deal is sized at a total Ps10.5 billion (US$17.4 million). ABN structured the paper in pesos, while the fixed costs - such as servicer fees and other administrative expenses - are denominated in inflation-indexed units (U.F.). A projected credit enhancement of 27%, largely from excess spread, helps mitigate the risk of rising inflation. Fitch Ratings and Moody's Investors Service affiliate Humphreys have rated the senior tranche of the transaction AA' on the national scale. Sized at Ps8.4 billion (US$14 million), the senior tranche has a legal final maturity of six years.

At launch, the underlying pool is expected to represent roughly 177,454 cardholders, with an average debt of Ps60,100 (US$100) and average term of 4.5 months. The rate charged card users has oscillated between 22% and 27% over the last two years. Apart from being ABN's first push into credit cards, the deal marks a market debut for Matic Kard. The card is used for pharmaceutical goods, cash advances and services at selected clinics.

This will mark the fourth credit card transaction in Chile's domestic market and the first in over a year. Originator La Polar broke the ice in November 2002 in a six-year deal totaling Ps66 billion (US$110 million). The asset class then went into hibernation as bankers moved on to other classes and originators remained resistant to off-balance sheet funding.

Also keeping busy is Banchile Securitizadora, which has an auto loan deal in the works for originator Forum. The structure resembles that of previous Forum deals structured by Bice Securitizadora, according to a source on the deal. Total volume is Ps18.1 billion (US$30.1 million), with a senior tranche worth 14.7 billion (US$24.4 million). The originator is the largest among specialized auto loan lenders. Thanks to excess spread and overcollateralization, the preliminary rating from both Fitch and Standard & Poor's affiliate Feller Rate is AA' on the national scale.

In the more traditional realm of housing finance, Securitizadora Security is crafting a deal backed by residential housing leases. The senior tranche of the deal totals 774 million inflation-indexed units (UF) and is rated AA' on the national scale by Fitch. Inmobiliaria Mapsa is the originator.

Finally, BCI Securitizadora has a deal in the works for retain chain Din, according to sources. The deal is projected to total Ps25 billion (US$41.6 million), with a senior volume of Ps13.5 billion (US$22.5 million). BCI has already led deals for chains La Polar and Ripley.

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